Sunday, September 27, 2020
Home Electricity Baltics agree on energy trade after launch of Belarus' nuclear power plant

Baltics agree on energy trade after launch of Belarus’ nuclear power plant

Energy Ministries from Estonia, Latvia and Lithuania reached an agreement on the functioning of energy trade with third countries after the launch of the nuclear power plant in Belarus.

“It’s important to us that the agreement covers issues important to Estonia, a tariff for the use of common infrastructure and a decrease in trading capacities with third countries,” said the Minister of Economic Affairs and Infrastructure Taavi Aas. “The agreement made covers these elements, which also improves the market position of and outlook for our electricity producers.”

Deputy Secretary General for Energy of the Ministry of Economic Affairs and Communications Timo Tatar said that Estonia has focused on finding solutions throughout the negotiation process.

“The equal treatment of market participants, sufficiently reduced risks concerning security of supply and the improvement of investment certainty on the Baltic electricity market are important to us,” he added.

Energy trade with Belarus will cease after the launch of its nuclear power plant and a system of certificates of origin of electricity will be implemented for this purpose. Electricity trade will be directed to the Russia-Latvia cross-section in reduced quantities, using the capacities leftover from internal trade in the Baltic States. Electricity trade between Kaliningrad and Lithuania will continue in the current quantities.

The establishment of a single tariff for infrastructure use was also agreed and will be done as soon as the acts that allow this have been adopted in Latvia and Lithuania at the end of the first quarter of 2021. Estonian laws already allow for the tariff to be established.

According to estimates, the agreement will reduce trade between the Baltic States and third countries by half and it will remain in force until the synchronisation of the Baltic electricity systems in late 2025.

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